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Technology Stocks : Cymer (CYMI)

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To: D.J.Smyth who wrote (6655)10/26/1997 3:58:00 PM
From: sepku  Read Replies (5) of 25960
 
>>>The New York Times article stated CYMI trades at 34 times 98 estimated earnings. This is incorrect. It actually trades closer to 24 times 98 earnings, and these earnings are for $1.04 to $1.10 a share based on CYMI selling only 400 lasers.<<<

I just realized that your figures are incorrect. Earnings for 1998 are projected anywhere from 1.80 to 2.20...I've even seen estimates as high as 2.50 ... your numbers are closer to the current fiscal year estimates.

So my previous PEG numbers were assuming little growth. If you take the mean of the '98 eps range at 2.00 and enter that into the equation based on CYMI at $28, you get a PEG ratio of 0.35 -- or CYMI currently sitting approx. at 35% it's fair value. So CYMI would be fully valued at $80 based on $2 eps in '98.

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